Gold Price Forecast – Gold markets continue to test major resistance

Gold markets rallied significantly during the trading session after the president of the ECB, Mario Draghi suggested that the ECB wasn’t above loosening monetary policy again. If that’s going to be the case, then it shows that central banks are still going to remain extraordinarily loose, putting an upward bias on precious metals.
Christopher Lewis
Gold daily chart, June 19, 2019

Gold markets got a bit of a boost due to ECB, suggesting that easing wasn’t completely out of the question, and that it’s very likely that we will continue to see quantitative easing offering a boost for the metals market. Beyond that though, we have the Federal Reserve coming out with a statement on Wednesday that could very well move the markets as well. If the Federal Reserve is anywhere near as easy as people hope they are, that should give the final push to gold markets.

Gold Outlook Video 19.06.19

Looking at the chart, it’s obvious that the $1350 level is the beginning of significant resistance extending to the $1360 level. Ultimately, we continue to pull back from those areas but if the Federal Reserve comes in and saves the markets with quantitative easing, that should send gold higher as it will be the last barrier to the market. Yes, the US dollar may be stronger than other currencies, but gold will benefit against fiat currencies in general, not just the US dollar. For example, if you have the ability to trade gold against the Euro, that might be around to take as well.

To the downside, the $1325 level should offer plenty of support, and ultimately it will be difficult to break down below. After the trading session on Tuesday, it certainly looks as if the buyers are flexing their muscles, and looking to take this market over yet again. $1400 may not be too far away.

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